Sales Tax Audit

Mastering California’s Tax Maze: How Mike Habib, EA Can Help Business Taxpayers Overcome FTB, CDTFA, and EDD Challenges

March 21, 2025 | Mike Habib, EA

California’s tax environment is notoriously complex, with businesses often facing a gauntlet of issues from multiple state agencies like the Franchise Tax Board (FTB), the California Department of Tax and Fee Administration (CDTFA), and the Employment Development Department (EDD). Navigating these challenges requires not just a deep understanding of tax law but also strategic representation. Here’s an in-depth look at the top five tax problems businesses encounter with these agencies and how Mike Habib, EA, can be your guide to resolution.

1. FTB – Unfiled Business Tax Returns

The Problem: Many business owners, particularly those new to California or overwhelmed by business operations, might neglect filing their required tax returns. This leads to a cascade of penalties, interest, and potential legal actions by the FTB.

Detailed Scenario: Consider a tech startup that, during its growth phase, failed to file its state income tax returns for three consecutive years. The accumulation of back taxes, penalties, and interest has now become a significant liability, potentially hampering the company’s ability to secure investments or loans.

How Mike Habib Helps:

Reconstruction and Filing: Mike assists in reconstructing financial records to accurately prepare and file all missing returns. He ensures compliance with California’s specific tax laws, like the requirement for businesses to file even if they have no income or owe no tax.
Negotiating Penalties: With his expertise, Mike can negotiate with the FTB for penalty abatement, especially if the non-filing was due to reasonable cause like financial hardship or misinformation.
Offer in Compromise: For businesses with substantial debt but limited ability to pay, Mike evaluates eligibility for an Offer in Compromise with the FTB, potentially settling the liability for less than the full amount owed.
Payment Plans: He establishes manageable payment plans, helping businesses keep their doors open while resolving their tax liabilities.

BBB “A” rated tax relief company by Mike Habib, EA

February 24, 2011 | Mike Habib, EA

Mike Habib is an IRS licensed Enrolled Agent who focuses his tax practice on helping his clients resolve their tax controversy matters. His tax relief firm is rated “A” by the better business bureau, which is quite rare for this industry as many are rated “F” or already ceased business operations like American Tax Relief and Nationwide Tax Relief and possibly many more to come.

Do you have IRS tax problems?

Don’t procrastinate anymore; call Mike Habib at 877-788-2937 for a free analysis of your tax situation. There are solutions to your tax problems.

California CDTFA BOE Sales Tax Audit Problem Help

December 6, 2010 | Mike Habib, EA

CDTFA California Department of Tax and Fee Administration

Formerly known as BOE California State Board of Equalization

Sales tax audit, CDTFA, BOE tax audits, SBE tax audit

SoCal Tax Help

January 7, 2010 | Mike Habib, EA

Southern California Tax Relief Services

IRS tax Relief, FTB tax Relief, BOE tax Relief, EDD tax relief

At Mike Habib, EA, a SoCal tax firm, we understand that being notified that your tax return is being challenged by the IRS or the FTB can be scary. When you are faced with an audit, or a collection action, by the IRS, or the FTB, you may not know where to turn or what to do. We have the skill set and representation expertise to deal with the IRS and the FTB on your behalf. We understand their rules and are experienced in negotiating the lowest possible tax debt settlement allowed by law.

CA Sales Tax Help

September 10, 2008 | Mike Habib, EA

California tax collectors to visit small businesses

As per Los Angeles Times

The effort is part of a new program to catch scofflaws. Investigators will be checking for seller’s permits, business licenses and evidence that firms are collecting and paying enough sales and use tax

Sales Tax BOE Announcement

June 30, 2008 | Mike Habib, EA

Final regs include new process for reporting employment tax adjustments and refund claims T.D. 9405, 06/30/2008, Reg. § 31.6011(a)-1, Reg. § 31.6011(a)-4, Reg. § 31.6011(a)-5, Reg. § 31.6205-1, Reg. § 31.6302-1, Reg. § 31.6402(a)-1, Reg. § 31.6413(a)-1, Reg. § 31.6403(a)-2

Mike Habib, EA

IRS has issued final regs on employment tax adjustments and refund claims, effective Jan. 1, 2009. The final regs modify the process for making interest-free adjustments for both underpayments and overpayments of Federal Insurance Contributions Act (FICA) and Railroad Retirement Tax Act (RRTA) taxes and Federal income tax withholding (ITW).

Sales Tax Audit? Now What Are Your Options?

May 4, 2008 | Mike Habib, EA

State Sales Tax & Use Tax Audits and Examination – why you need a tax professional on your side

Mike Habib, EA
myIRSTaxRelief.com

Among the most frightening words a business owner can hear are the words: sales tax audit. There are many reasons why this is a phrase that should be feared, not the least of which is that the negative outcome of a sales tax audit may cost you your business, your accounts receivable, your current business & personal assets, and can leave you starting over with nothing. There are options available to you though, keep reading to learn how you can survive this trying time.

Begin with the best possible defense – an exemplary system of record keeping when it comes to sales tax paid, received, and possible exemptions. Document everything and review your documents with an internal sales tax audit yearly. This gives you a great opportunity to catch mistakes that may have been made and correct them before an actual audit takes place. You will also want to review your documentation immediately prior to your audit.